Call to get Pre-Qualified: 800-806-9836 x280
USDA Loan Pro Logo
USDA Vendor Logo Florida USDA No #1 Lender

What is the minimum credit score for a USDA loan?

July 8th, 2016 by Sean Stephens

Is there a minimum credit score for a USDA loan?

While a certain credit score does not guarantee an approval, minimum credit scores do open up doors for qualifying options and available programs.

Today’s video tip will discuss what is the minimum credit score for a USDA loan along with other minimum conditions required.

I realize USDA qualifying guidelines can be complicated, but that is where we step in to help. My team is built to help walk homebuyers through the USDA process step by step.

Just simply call or email to discuss your scenario, schedule a convenient call back time, or complete our 1-2-3 online pre-qualifier to get started.

As an approved USDA lender, we offer specific experience and expertise on this unique program. Through this, we are able to provide value to the rural communities we serve and for those who need the benefits of a USDA loan.

What is the minimum credit score for a USDA loan?

USDA Rural Housing loans are unique with both the benefits they offer and their qualifying guidelines. With that being said, we are often asked if there is a minimum credit score for a USDA loan?

As with any loan program, there are minimum qualifying standards that must be met and part of that begins with what credit score qualifies for a USDA loan.

USDA guidelines state that “applicants with validated credit scores of 640 or greater meet the minimum credit reputation” provided indicators of unacceptable credit are not present in the applicant’s credit file.

It is always important to remember that a credit score in its self does not indicate that the applicant’s credit reputation is acceptable. Even when the credit score exceeds the minimum requirement, the lender must determine that each applicant, individually, and all applicants collectively, have an acceptable credit reputation.

Automated Eligibility through the Guaranteed Underwriting System (“GUS”) is possible with minimum scores of 640, while manual underwriting is available for scores below that mark.

Remember, that when working with manual underwriting, not all lenders offer this type of approval and varying lenders can have their own minimum score criteria.

USDA Guidelines further advise: “Loans with credit scores of 580 or below should not be approved.” As I have mentioned before,  meeting a certain minimum credit score for a USDA loan does not guarantee approval and minimum credit conditions will have to be met when determining overall USDA loan eligibility.

back to top